Owens Corning (NYSE: OC) reported Q1 EPS of $0.54, $0.04 worse than the analyst estimate of $0.58. Revenue for the quarter came in at $1.67 billion versus the consensus estimate of $1.68 billion.

“I am honored to be leading Owens Corning as the company’s eighth CEO. We are excited about the opportunity to drive growth across our global product portfolio to create value for our shareholders,” said Chief Executive Officer Brian Chambers. “For the first quarter, our results reflect good operational execution across the company.”

• Insulation delivered $15 million in EBIT, with strong performance in the technical insulation business
• Roofing produced EBIT of $74 million on lower market volumes
• Composites generated $57 million in EBIT on good commercial and operational execution

2019 Outlook

• The company’s outlook is based on an environment consistent with consensus expectations for global industrial production growth, U.S. housing starts, and global commercial and industrial construction growth.
• In Insulation, the company expects growth in global construction and industrial insulation markets as well as improved operating performance will drive earnings growth in the technical and other building insulation businesses. As a result of a softer macro outlook, the company now expects positive price to be more than offset by lower volumes and production curtailments in the North American residential fiberglass insulation business.
• In Composites, the company continues to expect growth in the glass fiber market, although the global industrial production growth outlook has softened, primarily in Europe. The company expects volume growth and improved operating performance to be offset by inflation.
• In Roofing, the company continues to expect relatively flat U.S. shingle end-market demand with industry shipments slightly below last year, assuming average storm demand. For Owens Corning, the company anticipates a favorable geographic mix comparison with the prior year and a higher share of shipments. Contribution margins through the first-quarter 2019 position the business for continued strong performance.
• The company estimates an effective tax rate of 26% to 28%, and a cash tax rate of 10% to 12% on adjusted pre-tax earnings, due to the company’s U.S. tax net operating loss and foreign tax credit carryforwards.
• The company expects general corporate expenses to be between $140 million and $150 million. Capital additions are expected to total approximately $500 million, with an increased focus on productivity improvements. Interest expense is expected to be approximately $130 million.
• The company anticipates sustaining strong conversion of adjusted earnings into free cash flow. The company plans to prioritize free cash flow to ongoing dividends and reduction of the term loan associated with the purchase of Paroc. Additional free cash flow could be deployed for share repurchases under the company’s existing authorization.

For earnings history and earnings-related data on Owens Corning (OC) click here.